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Mugabe dismisses mine furore

Business Report

April 3, 2006

By
From Reuters

Harare - Zimbabwe's President Robert Mugabe had dismissed an
uproar over a draft law that could result in the state taking control of
foreign-owned mines, saying the proposal was still being debated, state
media reported at the weekend.

Last month the department of mines
said the cabinet had approved amendments to the mining law "to indigenise 51
percent in some instances of all foreign-owned companies", stoking fears
that Zimbabwe could become even less attractive to foreign
investors.

Zimbabwe is battling a six-year recession. Mining has emerged
as the top foreign currency earner after the collapse of the agriculture
sector.

Mugabe, in his first public comments on the issue, told a meeting
of his ruling Zanu-PF party's central committee on Friday that the
government had yet to set a policy because discussions on the mining laws
were still at an early stage.

"There is no policy in place just yet
and the present furore is needless," Mugabe was quoted as
saying.

"This is a paper that is at a very early stage of discussion in
government."

The mines ministry in a statement to the Chamber of Mines
said that the amended law would give the government 51 percent in "energy
minerals mining companies", including 25 percent on a "non-contributory
basis", on promulgation.

Industry officials say that
"non-contributory basis" means the government would acquire shares without
paying for them.

The proposals have rattled an industry hit hard by
erratic electricity cuts and mine closures in the last five years as
operating costs have spiralled.

Last month a senior official from the
world's second-largest platinum producer, Impala Platinum (Implats), met
Mugabe to discuss the proposals.

Zimbabwe, with the largest platinum
deposits after South Africa, is the main area for Implats's future
growth.

Mugabe said the country's resources belonged to locals who had
the sole right to determine the level of foreign investment.

"There
must be recognition that our minerals are a depleting and non-renewable
resource, which we have allowed in the past to be wholly owned and exploited
by foreign-owned companies for well over a century," Mugabe
said.

"This will not be allowed in future."

Implats has
interests in Zimbabwe, along with the world's biggest platinum producer,
Anglo Platinum, and mining giant Rio Tinto.

Harare puts its best foot forward for journos

IOL

April 03
2006 at 01:46AM

Harare - More than a dozen journalists from China
and Indonesia arrived in Harare on Sunday for a tour of some of Zimbabwe's
key resorts, as part of a government bid to spruce up the country's image
abroad, state radio reported.

Zimbabwe, which has seen tourist
arrivals plummet during the past six years, has embarked on an
"image-building perception management programme", the report
said.

The radio said nine journalists from China and seven from
Indonesia had arrived in the country for a week-long tour of the country's
premier tourist resorts, including the renowned Victoria Falls.

Last week, a seven-member team of Malaysian journalists arrived for a
similar tour.

The Zimbabwe Tourism Authority (ZTA) says
earnings from tourism dropped by 49 percent in 2005, to $98-million from
$198-million in 2004.

The tourism body blames the trend on economic
problems such as triple digit inflation, chronic fuel shortages and the "bad
publicity" Zimbabwe receives from Western media.

Zimbabwe used
to be a popular destination for backpackers as well as high-paying tourists
who stayed in luxury hotels.

Critics say President Robert Mugabe's
programme of white-land seizures has scared away many would-be visitors.
Political tensions and shortages of essentials like fuel may also have
deterred others. - Sapa-dpa

Zanu PF Budgets Z$200 billion For 43rd
Anniversary

Zim Daily

Monday, April 03 2006 @ 12:06 AM BST
Contributed by: correspondent

The ruling Zanu PF is
budgeting a massive $200 billion to celebrate it's 43th anniversary which
have been scheduled by the youth wing and war veterans for August in Harare
amid reports ex-Zapu members are vehemently opposed to the idea, Zimdaily
heard yesterday. The planned extravagant bash is set to be thrown amid acute
shortages of basic food stuffs and grinding poverty across the
country.

Zanu PF was formed at former Defence minister Enos
Nkala's house in Highfield in August 1963. Zimdaily heard that the
celebrations this year were meant to coincide with the Heroes Day
commemorations.

It is however understood the plan has stirred
controversy and divisions in the party between the old Zanu PF and ex-PF
Zapu members. Zimdaily was told that ex-Zapu members, in the party's central
committee feel that the anniversary celebrations would render redundant the
1987 Unity Accord which brought the two parties together.

Other senior members who were against the idea included vice-president
Joseph Msika, ex-Home Affairs minister, Dumiso Dabengwa, deputy national
commissar, Sikhanyiso Ndlovu and Thenjiwe Lesabe. Zimdaily heard that the
ex-Zapu members have slammed the proposal saying the celebrations would
isolate them as they didn't share " the 1963 outlook", a reference to the
schism that took place that year when a group led by Ndabaningi Sithole,
Herbert Chitepo, Enos Nkala and Mugabe broke away from
Zapu.

"It is just a dangerous and crazy idea and we feel
it doesn't work," said a senior politburo member. "We are opposing this
celebration, coming as it does amid grinding poverty." Zanu PF Secretary for
Information and Publicity Nathan Shamuyarira told Zimdaily "The December
conference will obviously take place but I don't know about these
celebrations which you are talking about." Sources said the idea of
celebrations was mooted in Mutare after the 21st February Movement
celebrations, during which the party invited regional youths to celebrate
Mugabe's birthday.

War veteran Joseph Chinotimba, deputy
secretary for youth affairs, Saviour Kaukuwere and national political
commissar Eliot Manyika, were among the proponents of the idea. Reached for
comment Chinotimba confirmed that he was behind the idea and scoffed at its
detractors. He said there was nothing wrong because PF Zapu was no longer
there.

UZ Statistics Dept Set To Present New Inflation Model To
Govt

Zim Daily

Monday, April 03 2006 @ 12:06 AM BST
Contributed by: correspondent THE University of Zimbabwe (UZ)
will soon present a new inflation model to the government, amid fears that
the model used by the Central Statistical Office (CSO) is underestimating
the country's year-on-year rate of inflation, expected to peak 1 000 percent
before mid year. The UZ model, which is being developed by the university's
statistical department, is expected to be released this moth and then
presented to the government for consideration.

A UZ
statistics lecturer, who declined to be named for professional reasons told
Zimdaily: "We are currently working on a new inflation model which is going
to help in coming up with the most accurate measure of inflation in
country." The CSO's model gives less weight to food items, which analysts
however say are now making up the bulk of consumer purchases. Weights
reflect the allocation of income on expenditure by different economic
consumers in the country. The CSO assumes Zimbabweans spend 33.6 percent of
their income on food and the remaining 66.4 percent on non-food items. These
include recreation, entertainment, fuel and footwear, among other
commodities.

But the lecturer said most local consumers were
now spending up to 90 percent of their income on food. Food prices have
soared in the past year because of shortages resulting from a decline in
agricultural and manufacturing output as well as government-imposed price
controls.

The shortages have spawned a thriving black market
where prices are out of the reach of most low-income earners. The UZ
statistics lecturer said if the weights on Zimbabwe's inflation model were
rearranged to reflect the higher percentage of income spent on food,
year-on-year inflation could shoot up to 1 800 percent. Annualised inflation
rose to 782 percent in February. Economists say Zimbabwe's high inflation
rate is largely driven by changes in the prices of food items rather than
furniture prices and other non-food items.

But they said
the real climb in annualised inflation was not being reflected by an
inflation model that was designed years before thecountry's economy sank
into recession. "Inflation measures the general increase in the price level
and the weights are very crucial in coming up with the level of inflation
appropriate to a particular economy," said Brian Muchemwa, an economist at
the UZ. The lecturer added: "The inflation model used by CSO is misleading
the public; there is need to rework the weights used in calculating
year-on-year inflation to come up with the actual inflation
rate."

He said the CSO's inflation model was appropriate for
a developed country where most of the public's income was used for
recreational expenditure rather than food. But the economic crisis in
Zimbabwe has forced some people to use up to 100 percent of their income on
basic foodstuffs, whose prices are eroding their purchasing power.
Economists said salary and wage increases were also contributing to the
sharp increase in prices through demand-push factors. The government has
indicated that it wants to cut inflation to two digit figures by the end of
the year, a target that analysts say is unrealistic.

Zim's Appalling Human Rights Record Slammed
Again

Zim Daily

Monday, April 03 2006 @ 12:05 AM BST
Contributed by: correspondent A Zimbabwe human rights group said
on Friday there has been a sharp increase in rights violations over the the
past two months, recording statements from a massive 1 070 victims. The
group said most of the violations took place during protests by students and
civic groups during the first two months of the year.

A
police spokesman dismissed the report as a "lie", saying political violence
had been on a sharp decline since the March legislative poll. "It is with
regret that the Forum notes that in all these demonstrations, the police
assaulted some of the demonstrations. "The forum also highlights the case of
a member of the public who was severely assaulted by members of the Zimbabwe
National Army (ZNA) for allegedly stealing from a firm belonging to the wife
of an army General.

"The forum deplores such abuse of power
as a means of settling personal vendettas by people who appear to consider
themselves above the law," the Zimbabwe Human Rights NGO Forum said in its
latest report. The forum said the violoations so far this year had surpassed
the number of violations last year. "There is need for a concerted effort by
the government and the police to put an end to it. More so for as long as
state agents are perpetrators themselves," the association of 17 local human
rights groups added.

It cited among its sources, reports
from individual member organisations, newspaper stories and statements from
the mainly-white Commercial Farmers Union whose members' farms Mugabe has
been forcibly acquiring. Four people have been killed in the persavise
violence that has characterised the country. The report says there were 39
cases of assault, 417 cases of violation of freedom of expression and
association, 15 cases of political discrimination or victimization and 320
cases of unlawful arrest and detentions.

The Forum said
more than 5 000 human rights violations including four murders were recorded
last year. Police spokesman Wayne Bvudzijena said the number of deaths given
in the rights groups report was false. "They are lying. They are including
in that figure people killed in non-political violence. The number of
politically related deaths has gone down a lot since the elections,"
Bvudzijena told Zimdaily, without giving figures. The US government last
month said it was concerned about what it called continuing political
violence and human rights abuses against opposition
supporters.

The US followed by the EU slapped sanctions on
Mugabe and his close associates and, along with Zimbabwe's opposition, the
Commonwealth and the United States, denounced the veteran African leader's
claim of victory as fraudulent. Mugabe's ruling Zanu PF party insists the
March parliamentary election was free and fair. But opposition leader Morgan
Tsvangirai of the Movement for Democratic Change (MDC) has filed a petition
challenging the Zanu PF victory, saying there was "shocking evidence" of
electoral fraud. The MDC says more than 120 of its supporters have been
killed in state-sponsored unrest in the last five years. Government is in
the process of setting up its own Human Rights Commission, in a way a tacit
admission of the culture of human rights violations in the country

MDC factions battle for name

Daily Mirror, Zimbabwe

Takunda
Maodzaissue date :2006-Apr-03

THE anti-senate camp in Harare
yesterday vowed it would never allow Arthur Mutambara's faction to hold
rallies in the capital using the opposition party's name.Addressing a
rally in Mufakose, the camp's Harare provincial chairperson Morgan Femai
declared that the "rebels" had automatically expelled themselves from the
party by going against MDC resolutions, and urged his party supporters not
to entertain their rivals anywhere in the capital.He also said their faction
would never seek recourse in the courts to retain sole use of the party name
come what may."When the MDC was formed in 1999, its mandate was to remove
Zanu PF from power, but we now have other people who claim to be MDC. We
first have to deal with such people before we tackle Zanu PF."You should
not allow them to put posters in Harare using the MDC name. Our dispute with
them will not end until they stop using our name," said Femai.He added: "We
will never go to court over the issue of the party's name. Let me warn
members of the pro-Senate camp again that we will never go to court. Among
us, we know the real MDC - the one led by Morgan Tsvangirai."They
(pro-Senate camp) are there to disturb us, but before we remove Zanu PF
tinotanga tavagobora. (we will stamp them out)."Femai alleged the pro-Senate
camp "hired" Mutambara from South Africa to cause commotion within the
opposition.Kambuzuma legislator Willas Madzimure also took a swipe at the
Mutambara faction."They claim that Tsvangirai has failed, but they hired
their leader from South Africa, a man who does not even know the cost of a
loaf of bread. They hired him as if he is a football coach," Madzimure
said.Mufakose legislator Paurina Mpariwa echoed similar sentiments, pouring
vitriol on the pro-Senate camp.Slogans denoucing the pro-Senate camp
leadership comprising Welshman Ncube, Gift Chimanikire, Priscilla
Misihairabwi- Mushonga and Job Sikhala, dominated the rally attended by
party supporters from Glen View, Budiriro, Kuwadzana, Mufakose, Kambuzuma,
among other Harare consitutencies.Apart from the party name issue, the rival
factions are also fighting for control of MDC properties.Last week a
group of 10 people suspected to be from the Tsvangirai faction pounced on an
official from the other camp and hijacked a party vehicle. The matter was
reported to the police, but so far, nobody has been arrested.Ncube, the
pro-Senate secretary-general, deplored violence after the hijacking
incident saying that was the very reason his camp was now divorced from
Tsvangirai.He said the former trade unionist had a propensity to resort to
violence to resolve disputes, a ploy that contradicted democratic
principles.Ncube said the dispute between the two camps should be resolved
through peaceful negotiations or in the courts.Meanwhile, the
anti-Senate faction said yesterday's rally in Mufakose was a follow-up to
resolutions made at its congress last month; chiefly democratic
resistance.The camp agitated for "democratic resistance" against the
government with Madzimure noting the electoral route had failed to bring
desired results claiming the process was flawed."One of the resolutions
passed at our congress was that of democratic resistance," he said."For
the past years we have been participating in elections, but there were all
rigged. Democratic resistance must start with boycotting paying rates for
garbage collection as the municipality is not collecting garbage yet they
(the commission running Harare) continue to charge us garbage collection
rates."On President Robert Mugabe's warning to Tsvangirai's call for mass
protests to topple the Zanu PF government, Madzimure said the Head of
State's statement was a threat meant to scare genuine MDC members.Paul
Madzore, the legislator for Glen View, and Femai openly declared their
support for Tsvangirai's call for "democratic resistance"."I will be
right behind Tsvangirai (during the demonstrations)," Femai said.Addressing
mourners at the burial of his former body guard, Senior Assistant
Commissioner Winston Changara at the National Heroes Acre on Friday,
President Mugabe said Tsvaingirai's calls were tantamount to digging his own
grave.

Harare hikes maternity fees

Daily Mirror, Zimbabwe

The Daily
Mirror Reporterissue date :2006-Apr-03

THE Harare City Council has
hiked maternity fees at its clinics by more than 100 percent, in apparent
defiance of a government order temporarily barring private doctors, clinics
and hospitals from effecting fee increases in the meantime.The increase,
effective this month, is the third since November last year.In a survey
conducted by The Daily Mirror, most clinics in the high-density suburbs were
charging between $5 million to $7 million in booked maternity fees up from
$3 million in January this year.Expectant mothers who would not have paid
booking fees in advance would be expected to pay $7 million in addition to a
fine.Reached for comment yesterday, City of Harare spokesperson Madenyika
Magwenjere, said he wanted written questions first before he could
respond.But he explained that Harare was the only local authority in the
country offering affordable antenatal treatment at its clinics."You have
to fax your questions to me or bring them in person here (Town House) so
that I can check whether the fees have been hiked, but the City Council is
the only authority whose clinics are cheaper and affordable than other
authorities," Magwenjere said.Late last year, the city's finance and
development committee recommended that maternity fees be increased to match
those charged by other local authorities.The council's finance committee
attributed the increase to various factors, but mainly to inflation, which
was then pegged at 375 percent."Various factors inclusive of the devaluation
of the Zimbabwean dollar since January last year, low interest rates and
foreign currency shortages have contributed to the decline in service
delivery," the fiscal committee said. Many people have expressed concern
over the new maternity charges saying they were prohibitive considering the
high cost of living and hyperinflation.An Epworth woman said it would be
difficult for many mothers-to-be to raise the new fees since they equalled
their salaries if not more."It will be difficult for some of us to pay the
maternity fees. We have many responsibilities yet the salary is little. We
need to pay rent and school fees, we also need to buy other basics like food
and clothes," she lamented.While another woman in the capital said the rise
in maternity fees would leave many expectant mothers with little option but
force them to consult local (traditional) midwives."It seems many
expectant mothers will consult midwives for help rather than going to
clinics. The price of food, rent and other basics skyrocketing daily," she
said.Maternity fees shot to $1,2 million up from $600 000 with effect from
November 1 last year before they were hiked to $3 million in January this
year.Clinic fees for adults and children have also risen with most
health centres charging between $400 000 and $500 000 for adults up from $50
000.Between November last year and January this year, adult fees were pegged
at $200 000 while those for children have risen to between $150 000 and $200
000 up from $20 000 last year.The council move comes against the
backdrop of a State directive invoked under the Medical Services Act of 1998
freezing all fee increases pending an inquiry into the operations of private
health practitioners, clinics and hospitals.The government made the
decision widely expected to receive thumps up from the generality of people
following a meeting it held with representatives of the Zimbabwe Medical
Association (standing for doctors), Private Hospital Association of Zimbabwe
and the Association for Healthcare Funders (formerly National Association of
Medical Aids Societies - Namas).Private health care provides had initially
indicated their intention to increase fees by 420 percent effective April 1
this year, but this subsequently dropped to between 76 and 96 percent
following talks with medical aid societies.

Farmers owe Zesa $15bn

Daily Mirror, Zimbabwe

Golden
Sibandaissue date :2006-Apr-03

FARMERS in Marondera district,
Mashonaland East Province, owe Zesa Holdings in excess of $15 billon in
unpaid electricity bills accrued over the last four months.This came to
light during an agriculture stakeholders, meeting held in Marondera last
week to chart the way forward with respect to this year's winter wheat
programme.Zimbabwe Electricity Distribution Company (ZEDC) sales manager
Marondera District, Patrick Mashingaidze, made the revelation while
addressing the meeting held in Marondera last week.He told The Business
Mirror that ZEDC has since embarked on a drive to recover money owed to the
company pointingout that in some instances they have resorted to
disconnecting supplies to compel farmers to pay."We will be following up
on the farmers who are in arrears. We will also disconnect supplies to
farmers who have exceeded 60 days. In fact, in some instances we have
already started disconnecting power supplies," said Mashingaidze.Farmers
owe the power utility at total of $15 397 103 527 12 as of March 30,
2006.Of the debt, $3 billion is for the current month, $4 billion is for
last month, $2,9 billion for the last 2 months, $1,8 billion for three
months ago, while $2,7 billion has not been paid over the past four
months.Farmers in the area have not paid up despite the fact that they
receive loans from Agribank to cover such input costs as labour and
power.This also comes at a time the power utility is battling to mobilise
resources to raise its generating capacity as well as import some power from
neighbouring countries in the region.Mashingaidze indicated that the
country has a national power deficit of 40 percent of national
requirements.In light of that he warned that the power utility would resort
to load shedding during the winter period to avert possible national black
outs."There is no way we (Zesa) can avoid that (load shedding) because of
shortage of power in the country."We have a 40 percent shortage to
national power requirements and that shortfall is difficult to fill up
without establishment of more generating units."The revenue we get from
selling electricity to local consumers is also not enough for us to import
the 40 percent shortfall," said Mashingaidze.As such, he pointed out that
farmers should make full use of power during off peak periods during which
there is high certainty there would not be any planned power cuts.During
winter, he said, Zesa would cut supplies between 6 and 10 in the morning and
6 to 10 in the evening.Farmers use electricity to power electric motors to
pump water from reservoirs when irrigating their crops, particularly during
the winter season.It also emerged at the meeting that farmers could face
unplanned power supply interruptions because of vandalism on Zesa
infrastructure.In Marondera district Zesa has lost a total of 288
transformers, while others have had oil drained. The power utility's
conductors in the area have also not been spared the wrath of
vandals.Under such circumstances, Zesa said farmers should report vandals to
authorities as failure to do so would only be a major drawback on their
activities and business, as that infrastructure needs to be imported at a
time Zesa is having problems securing hard currency.

ZTA to review costs in resort areas

Daily Mirror, Zimbabwe

The
Daily Mirror Reporterissue date :2006-Apr-03

THE Zimbabwe Tourism
Authority (ZTA) is implementing a mechanism to review the prohibitive prices
charged by retail outlets in resort areas and by vendors of
artifacts.This was revealed by ZTA chief executive, Karikoga Kaseke, at a
debrief meeting of members of the Malaysian media who had been on a tour of
the country."Let us be realistic about our pricing system. Shopping at
our airport is more expensive than doing so in town. No country that is
serious about tourism can do that. It is an illusion that just because the
Victoria Falls is a world wonder, prices should be expensive," he
said."We are working on the issue of pricing as part of our marketing plan.
It will be ready by the first half of the year."His comment was in
response to concerns raised by the visiting media over exorbitant prices
charged by those who sold artifacts in resort towns. The head of the
Malaysian media delegation, Ravin Ravichandran, said prices of artifacts
were prohibitive."When the team was in Victoria Falls, the pricing of stamps
was not reasonable. They were going for US$2 but in our country our stamps
are only 20 US cents. A painting was going for US$20. This was shocking," he
saidRavichandran added that although these seemed like trivial issues, this
is what made the difference in attracting tourists to the country.He,
however, commended the ZTA for exposing them to the real situation in
Zimbabwe, which was in stark contrast to the negative perception created by
the international media." We read from the international media a lot of
negative things about Zimbabwe, about the country being on the brink of
collapse. There is nothing like that. These are negatives that deserve to be
corrected," Ravichandran said.He urged the ZTA to come up with
aggressive strategies to fight this negative portrayal with well-planned
strategies, which include visits by ZTA to Malaysia Tour Expos to market the
country.Zimbabwe has been suffering from negative reporting by the
international media since 2000, primarily because of the stance taken by the
government to redress the imbalance in land distribution perpetrated by the
colonial regime. ZTA will host another media delegation from China expected
in the country soon.-New Ziana

Zimbabwe Vigil Diary - 1st April 2006

We were pleased to have with us
Adella Chiminya, whose husband, Tichaona, was one of the first MDC victims
of the Zanu-PF regime. He was Morgan Tsvangirai's campaign manager and was
burnt to death by Mugabe's people six years ago while police stood by. His
name features on the roll of honour displayed at the front of the Vigil
under the headline "Mugabe wanted for murder". The people who have caused
the devastation in Zimbabwe will not escape justice. Adella was clearly
cheered by the Vigil and has promised to come again. Among newcomers to the
Vigil was Jethro from Derby, who arrived early in a rather depressed state
and was elated by the time he left on his long journey home.

The
Vigil was enlivened by a group of exuberant supporters from Leicester and
the powerful singing and drumming drew in many passers- by. They included
two groups of young Londoners dressed in everything from ball gowns to top
hats. Shortly after they left the near perfect weather was suddenly
interrupted by a sharp downpour. Never has our tarpaulin been raised so
quickly.

There was an under-delivery of the Zimbabwean this week and
many were disappointed not to be able to buy one. But everyone got a chance
to look at a copy. Talking of newspapers, the recent drought in stories
about Zimbabwe has been broken with a vengeance with a two- page spread in
the Sunday Times: "Desperate mothers throw away 20 babies a week as Zimbabwe
starves" - http://www.timesonline.co.uk/newspaper/0,,176-2114280,00.html.
We doubt whether it will make much impact on the pointy-shoed Zimbabwean
ladies seen going in and out of the Embassy today with their expensive
shopping bags.

FOR THE RECORD: 75 signed the register.

FOR
YOUR DIARY: Zimbabwe Forum, Upstairs at the Theodore Bullfrog pub, 28 John
Adam Street, London WC2 (cross the Strand from the Zimbabwe Embassy, go down
a passageway to John Adam Street, turn right and you will see the
pub).· Monday, 3rd April, 7.30 pm - Peter Tatchell will talk on how
to campaign effectively to put Zimbabwe on the UK agenda.·
Monday, 10th April, 7.30 pm - Action Planning - Discussion and decisions on
campaigns and demos.

Vigil co-ordinator

The Vigil, outside the
Zimbabwe Embassy, 429 Strand, London, takes place every Saturday from 14.00
to 18.00 to protest against gross violations of human rights by the current
regime in Zimbabwe. The Vigil which started in October 2002 will continue
until internationally-monitored, free and fair elections are held in
Zimbabwe. http://www.zimvigil.co.uk